Regis Healthcare tracks ahead of profit target
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The news: Aged care services provider Regis Healthcare said it is tracking "modestly ahead" of its internal profit target at the start of the new financial year, boosted by new government funding reforms.
The numbers: Regis said its average occupancy improved from 94.9% in Q4 FY24 to 95.5% in Q1 FY25, with spot occupancy on 31 October at 96% tracking ahead of budget.
Aged care government revenue per occupied bed day increased to $299.30 in the first quarter.
The context: In prepared remarks ahead of today's annual general meeting, Regis managing director and chief executive Linda Mellors said that the company anticipates future benefits from rising demand, better workforce availability, increased government funding and targeted strategic investments in acquisitions and developments.
In September, Regis shares advanced after Labor struck a deal with the Coalition to introduce major aged care reforms. Proposed changes around refundable accommodation deposits are seen to favour the industry, with aged care providers like Regis able to retain 2% of a resident's refundable accommodation deposits for up to five years.
What they said: "Regis welcomes the recent government funding reforms which are essential to restore the sector's viability and meet the current and growing needs of older Australians," Mellors said.
The source: ASX announcement
